Hampshire, UK – 10th September 2024: A new study by Juniper Research anticipates that the first year of commercial direct-to-cell services will be 2025; generating a modest $30 million in revenue globally.
However, we forecast that operators will generate almost $1.7 billion by 2029. Despite this impressive 8,000% growth, the study predicts that operators will face challenges in securing a return on their substantial investment into the creation of direct-to-cell networks.
Direct-to-cell services enable cellular connections to access network services directly from satellites in orbit. These services are enabled by satellite-capable radios in devices and partnerships with satellite network operators.
An extract from the new report, Global Direct-to-Cell Market 2024-2029, is now available as a free download.
How Best to Monetise Direct-to-Cell?
The study identified two key challenges in maximising return on investment:
1. The low cost of low-power IoT connections.
2. The commoditisation of connectivity.
Owing to the demand for connectivity and remote monitoring from nomadic industries, such as maritime, the report predicts that low-power connections will represent the most prominent use case for direct-to-cell. However, these connections will generate an average of less than $2.00 per month; diminishing operators’ ability to secure a return on investment.
Given the commoditisation of mobile connectivity, the study also predicts that operators will struggle to convince mobile subscribers to adopt an additional subscription for direct-to-cell services on top of existing cellular plans. As such, we urge operators to focus on tailoring direct-to-cell services specifically to nomadic travellers and remote subscribers.
Research author Sam Barker remarked: “Operators must promote the substantial coverage their direct-to-cell networks serve and apply premium pricing for data-intensive connections for broadband and consumer use cases. This will attract users of profitable direct-to-cell services, such as mobile broadband and smartphone subscriptions.”
About this Research
The new research suite offers the most comprehensive assessment of the Direct-to-Cell market to date, including insightful market analysis and in-depth forecasts for 60 countries. The dataset contains over 23,000 market statistics within a five-year period. It also includes case studies for the leading satellite network operators.
Juniper Research has, for two decades, provided market intelligence and advisory services to the global telecommunications sector, and is retained by many of the world’s leading network operators and communications platforms.
Contact Sam Smith, Press Relations
T: +44(0)1256 830002
E: sam.smith@juniperresearch.com
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